Irc Section 1411

In the case of a taxpayer making a joint return under section 6013 or a surviving spouse as defined in section 2 a 250 000 i r c.

Irc section 1411. Therefore with respect to b and c prs is not a trade or business described in section 1411 c 2 and 1 1411 5. D owns the remaining 20 of prs. The net investment income tax is imposed by section 1411 of the internal revenue code.

Except as provided in subsection e 1 application to individuals. In the case of an individual there is hereby imposed in addition to any other tax imposed by this subtitle for each taxable year a tax equal to 3 8 percent of the lesser of. The term net investment income shall not include any distribution from a plan or arrangement described in section 401 a 403 a 403 b 408 408a or 457 b.

The niit applies at a rate of 3 8 to certain net investment income of individuals estates and trusts that have income above the statutory threshold amounts. 1411 b 2 in the case of a married taxpayer as defined in section 7703 filing a separate return 1 2 of the dollar amount determined under paragraph 1 and. Internal revenue code section 1411 imposition of tax.

Assume for purposes of this example that prs is a passive activity with respect to d and therefore is a trade or business described in section 1411 c 2 a and 1 1411 5 a 1.